Spray It
Spray It
Spray It
Spray-it
Group 4
Ron Quadros, Calvin Pinto, Malcolm Pinto, Rochelle Rodrigues, Ganesh Prasad
Segmentation
Targeting
Demographics:-
Geographic’s:-
Since we are a small time player, we will be targeting just the main
metros in India, as initial demand for this product is necessary for the
success of this enterprise. After this we will expand to ter-1 and tier-2
cities respectively.
Psychographics:-
We want to show that our product is more convenient to use than all
the other players in the market, as all the user needs is 1 finger and a
few second to apply so as to relieve him/herself from any itch(as
opposed to other products that that take a couple of minutes for
applying).
Break Even Analysis
At Breakeven Point,
Total Revenue = Total Cost
Price x Quantity = TFC + (VC XQ)
68 X Q = 300, 00,000 + (10 X Q)
Q = 300, 00,000
68 – 10
Q = 517,242 units
Costs break up (Approximation)
Fixed Cost
Rent 12,
00,000
Raw Materials
80, 00,000
Logistics 100,
00,000
Maintenance 18,
00,000
Variable Cost
Wages
3/unit
Electricity 3
Overheads 2
Year 0 (In
Particulars lakhs) year 1 year 2 year3 year4 year 5
Sales Revenue 0 340 420 480 550 650
COGS 0 250 280 300 320 380
Gross Margin 0 90 140 180 230 270
Development costs 25 0 0 0 0 0
Marketing costs 0 100 110 150 180 200
allocated overheads 0 20 25 28 30 35
Gross Contribution -25 -30 5 2 20 35
supplementary contribution 0 0 0 0 0 0
Net contribution -25 -30 5 2 20 35
discounted contribution -25 -23 2 0 10 15
cumulative discounted cash
flow -25 -48 -46 -46 -26 -25
Note: Sales Revenue is based on the assumption that sales in the first year will be around
5 lakhs units
MARKETING MIX:
Product:
Spray It is a spray that provides relief from ‘itching caused due to
sweat retention, moisture in the folds of the skin (groin, underarms,
waist, beneath the blouse-strap, etc.) tight garments, warmth and
friction’. This is clinically described as ‘Intertrigo’ – a common problem
having high occurrence in tropical conditions.
It also provides relief from other soars, burns, rashes, irritation of skin
and bruises, etc.
Price:
20 ml sized bottles- Rs. 50/-
50 ml sized bottle- Rs.80/-
Promotion strategy:
Objective:-
Position Spray It as a specialist spray for relieving sweat-itch
Broaden user base by addressing both serious and non-serious
sufferers.
Address how Spray it can better the quality of life of the sufferer
by relieving him/her from ‘discomfort caused due to the inability
to scratch’.
Qualify relief provided by Spray It to be ‘quick’ or ‘instant’,
thereby, repositioning other solutions.
Show convenience of usage and how our product is different
from others.
To portray the problem of itching as a problem faced by men,
women as well as kids. This product is suited for all types of
people.